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Protecting what British families value most

189,000

protection claims paid out

£21m

a day in claims to businesses

£17m

a day in property claims

The UK’s insurance and long-term savings industry is relied on by tens of millions of British households and businesses to protect their families and build for the future. Of the 26.5 million households in the UK in 2018, 19.3 million had contents insurance, 20.0 million had motor insurance and 16.5 million had buildings insurance. Meanwhile there were 25.1m individual pension policies in the UK in 2018.

Spotlight on household protection:

Motor insurance

Insurers paid out £29m a day in motor claims in 2018, of which £22m was to domestic customers.

Property insurance

A total of £17m a day was paid out in property claims, £9m of which went to domestic consumers.

Travel and health insurance

Travel claims amounts to £1.1m a day in 2018, while the average private health insurance claim came to £1,906.

Business insurance

Insurers paid out £20.9m a day in claims to businesses in 2018.

Long-term savings and protection

In 2018, £5.3 billion was paid to 189,000 customers or families as a result of claims on protection insurance policies, shielding families from risks like bereavement or sickness - an average of £14.5m each day.

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Motor insurance

The claims acceptance rate for private motor insurance claims in 2017/18 was 98.4%, while the average bodily injury claim was £10,454. The overall average for all types of private car claims was £3,082.

Property insurance

By Q3 2019, the average premium for a combined building and contents policy had fallen to £315, down 5% from its highest peak in Q3 2012. The average premiums for buildings and contents only, were £256 and £129 respectively. Claims for escaped water damage and weather made up almost half the value of all claims, accounting for 27% and 18% respectively. Fire was 16%.

Travel and health insurance

In 2018, travel insurers paid out £399m for 498,000 claims to travellers who needed help whilst they were abroad. £209m of this was to cover the cost of emergency medical treatment, and £145m for cancellations.

Business insurance

Insurers provide a safety net for businesses of all types and sizes, protecting employees, commercial vehicles as well as providing businesses the security to trade abroad.

In 2018, insurers paid out £570m in Employers’ Liability claims, and £1.59bn in other types of liability claims. They also paid out £2.5bn in commercial motor claims and £2.8bn in commercial property claims. Trade credit insurers paid out £301m in claims in 2018.

Long-term savings and protection

Pension annuities provided an income to 6.6m retired people in the UK in 2018. Reforms in the 2014 Budget allowing more flexible use of pension pots saw £8.2bn in cash being withdrawn in the first year the policy was in force and £6.8bn in 2018. There were 23.7m individual term, whole of life, income protection and critical illness insurance policies in force in 2018.

 

February 2020
If you have any questions please contact helpingbritainthrive@abi.org.uk or +44 (0) 207 600 3333
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